Industrial sector to get additional gas supply
The industrial sector will be provided with an additional 250 million cubic feet of gas to rise from the crisis, said adviser for power, energy and mineral resources Fouzul Kabir Khan. He said the government will increase gas import and reduce gas usage in the power sector to provide additional gas supply in the industrial sector.
The energy adviser disclosed this while speaking to newspersons following a meeting with businesspersons at the secretariat last Wednesday. The businesspersons have been expressing concern regarding the growing gas crisis in the industrial sector for several months. They met the energy adviser with the demand to increase gas supply.
Speaking to newspersons following the meeting, Fouzul Kabir Khan said two decisions had been taken. First, the government provided 1.2 billion cubic feet of gas for power generation during Ramadan. From there, 150 million cubic feet of gas will be provided to the industrial sector. Second, in the four months from May to August, four ships of liquefied natural gas (LNG) will be imported additionally. Overall, the industrial sector would get an additional supply of 250 million cubic feet of gas.
The adviser said the additional supply would be provided in the industrial area. The businesspersons will decide where to provide the additional supply. The government will act according. Besides, there would be enhanced vigilance, Fouzul Kabir Khan added.
The adviser further said, “The entrepreneurs also raised another issue. They said some gas supply became unavailable due to illegal connections. So a taskforce will be formed to cut off the illegal connections. The process will start very soon.”
Fouzul Kabir Khan said, “The government is quite sensitive about the industrial sector especially due to the reciprocal tariff imposed by the Trump administration. Domestic gas production is declining gradually. Besides, new industries are being sprung up in the country. This is why the government has decided to increase LNG imports.”
Asked whether import of additional gas will increase pressure on subsidy and will it have an impact on gas prices, the adviser said, “There will be a deficit of Tk 110 billion for the additional four ships of LNG. However, the deficit would be much more if production in the industrial sector is hampered. Therefore, the government is trying to bring a balance.
“The government is providing gas at a rate cheaper than the purchase rate. Despite that, the government isn’t raising gas prices considering the crisis in the industrial sector and public sufferings.”
Asked whether the government can ensure that there won’t be any gas crisis in future, Fouzul Kabir Khan said, “The government cannot give any such guarantee. The crisis did not arise during the rule of the current government. The crisis has been going on for a long time. We have taken charge for a short term. Nevertheless, we are trying our best.”
Speaking regarding the impact of reducing gas supply in power generation, the adviser said, “We will focus more on oil-run power plants. Already, most of our active power plants are run on furnace oil. But we will run such power plants more after reducing gas supply in power generation.”
He further said, “The government prioritised power generation and irrigation during the Ramadan. Now the industrial sector is the priority of the government.”
The adviser also talked about the government initiatives to enhance domestic gas production. He said the government had a plan to explore 50 gas wells this year. The target will be 100 gas wells next year. The process to find a new gas well in Bhola starts very soon. Gas production from three gas fields has increased by 27 million cubic feet just by renovating old gas wells, which has already been added to the national grid.
Asked whether the businesspersons are satisfied with the government initiative or not, Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) former president AK Azad told the newspersons, “We have informed the government, the Petrobangla and the Titas Authorities about our problem. We are satisfied with the solution that the adviser provided today. Hopefully, the problem will be solved if the government can stick to the backup plan that the adviser shared with us in the meeting.”
Meghna group of Industries Chairman Mostafa Kamal, BKMEA president Mohammad Hatem, Bangladesh Chamber of Industries (BCI) president Anwarul Alam Chowdhury and Pran-RFL Group chairman Ahsan Khan Chowdhury were also present in the meeting along with chief adviser’s press secretary Shafiqul Alam and energy secretary Md Saiful Islam.